The law of demand states that:

a. As price falls, quantity demanded increases, ceteris paribus.

b. As price falls, demand falls, ceteris paribus.

c. As price falls, demand increases, ceteris paribus.

d. As price falls, quantity demanded falls, ceteris paribus.

Answer: The law of demand States that as price falls, quantity demanded increases and vice versa. (A).

Explanation:

In Economics, the law of demand states that all other things being equal; as the price of a good or commodity or service increases (↑), the quantity of the good/service demanded declines (↓); also, as the price of a good/service declines (↓), the quantity demanded increases (↑).

In other words, the law of demand shows an inverse relationship between the price and quantity demanded of a good/service.

Consequently, other things being constant, the quantity demanded of a good/service is inversely proportional to the price of the good/service.

For example if the price of a luxurious car falls it would motivate the buyers to rush to get a car. This law of demand is also used by marketers to attract buyers by the use of discount on goods.